America's oldest gun manufacturer, Remington, has filed for bankruptcy after a weekend where millions of students marched across the USA against gun violence in the wake of the Florida school shooting. Inc. on Sunday filed its anticipated Chapter 11 plan in DE bankruptcy court, saying an unexpectedly slack market for firearms in 2017 left it unable to keep up with the demands of its more than $1 billion in debt. The agreement announced last month includes giving this stake to lenders in exchange for reducing its debt of $945 million by $700 million.
Remington is owned by private equity giant Cerberus, which began buying up gun companies a decade ago.
Cerberus, which bought the company in 2007, tried to sell Remington just a week after Sandy Hook - but no-one wanted to buy it. Some gun-rights advocates have binged on guns on the misguided belief that a Democratic administration would harshly restrict gun sales.
Founded in 1816, Remington is one of the oldest and best-known gun manufacturers in the world. The company has been sued by family members of the Sandy Hook victims.More news: Poisoned Russian spy sought pardon from Putin
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"Remington's fortunes took a hit after the election of Donald Trump, a self-proclaimed "true friend" of the gun industry. This 3% of the population owns half of the civilian guns in the USA", reports Youyou Zhou for Quartz.
In 2015, Colt Holdings Co., another storied gun maker, filed for Chapter 11 bankruptcy. It has been many years that we have seen these kind of numbers.
The company said, when it first announced its plan to file for bankruptcy in February, that operations "will not be disrupted by the restructuring process".
BlackRock is a major shareholder in gun makers Sturm Ruger, American Outdoor Brands, and Vista Outdoor Brands.